Translated with AI
The European Union has developed a plan under which the purchase of American weapons for Ukraine will be financed by funds from frozen Russian assets. This involves a so-called reparations loan of €140 billion, which Ukraine will be required to repay after receiving compensation from Russia. The loan is scheduled to be disbursed by the end of 2025. The idea was proposed in September by European Commission President Ursula von der Leyen.
According to The Financial Times, citing a European Commission document, the majority of the loan will be used for arms procurement and to support the defense industries of Ukraine and Europe. The document specifies that "cooperation with international partners willing to provide significant additional support to Ukraine is possible."
The main condition for the initiative's implementation is Washington's continued support for Kyiv. By purchasing weapons from the US, Brussels hopes to maintain US involvement in aiding Ukraine and strengthen this cooperation through major arms supply contracts. Furthermore, the European Commission called on G7 countries and other allies to "strengthen their support for Ukraine alongside the EU." This could include creating similar "reparations loans" from frozen assets in their jurisdictions or providing additional aid.
The majority of Russian assets—approximately €170 billion—are held in the Euroclear depository in Brussels. The EU currently uses a mechanism to channel profits from these assets to Ukraine, while the funds themselves remain frozen.
Russia calls the asset seizure illegal and compares it to theft, declaring its intention to take legal action if the measures are implemented.
